WORK Medical closes $2.9 million registered direct offering

NEW YORK - WORK Medical Technology Group LTD (NASDAQ:WOK), a supplier of medical devices in China, has closed a $2.9 million registered direct offering, according to a statement released Friday. The offering comes as the company faces significant financial challenges, with InvestingPro data showing a market capitalization of just $5.39 million and a concerning cash burn rate.

The company sold approximately 39 million Class A ordinary shares (or pre-funded warrants) to several investors at a price of $0.075 per share. The pre-funded warrants were offered at the same price less the exercise price of $0.0005 per share.

Univest Securities, LLC acted as the sole placement agent for the transaction, which was conducted under a shelf registration statement previously declared effective by the SEC on September 15, 2025.

WORK Medical Technology Group develops and manufactures Class I and II medical devices through its subsidiaries in China. The company’s product portfolio includes 21 products, such as customized masks and other medical consumables, which are sold across China and in more than 30 countries worldwide. Despite generating revenue of $10.74 million in the last twelve months with a gross profit margin of 27%, the company currently trades below its Fair Value according to InvestingPro’s valuation models.

The company has registered 17 products with the U.S. Food and Drug Administration, allowing them to enter the American market.

The offering was made pursuant to a shelf registration statement on Form F-3 filed with the SEC. A final prospectus supplement and accompanying prospectus describing the terms of the offering have been filed with the SEC.

The information in this article is based on a press release statement from the company.

In other recent news, WORK Medical Technology Group LTD has announced a registered direct offering expected to generate approximately $2.9 million in gross proceeds. The company plans to sell around 39 million Class A ordinary shares at $0.075 per share. Additionally, there is an option for pre-funded warrants in place of shares. This transaction is anticipated to close around September 26, 2025, contingent upon customary closing conditions. These developments reflect WORK Medical’s ongoing efforts to raise capital. The offering is expected to support the company’s financial strategies. This move comes as part of recent activities by WORK Medical to engage investors and strengthen its financial position.

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